Will South Africa’s president survive the latest political storm?

Cape Town, April 7, 2017: South Africans took to the streets in the tens of thousands to protest the president’s controversial moves (source: dpa)

Two out of the world’s three top rating agencies
downgraded South Africa’s credit to junk status following President Jacob
Zuma’s controversial firing of a finance minister

Charges of economic ignorance
and of blatant influence peddling have put the president in jeopardy, even though
the ruling National African Congress (NAC) retains a comfortable majority in
parliament

Considering the depth of the crisis and the broad opposition to Mr.
Zuma, South Africa faces the prospect of serious escalation – unless the
country’s black and white elites rise to the occasion

April 2017
was a gloomy month for the Republic of South Africa (RSA). Fitch Ratings
downgraded the country’s securities across the board, to sub-investment grade.
The decision followed a similar move by Standard & Poor’s – announced
immediately after South African President Jacob Zuma reshuffled his cabinet on
March 30, prompting the fiercest political crisis in many years. The root of
the crisis was a conflict between the two sacked ministers and the politically
well-connected owners of a powerful business group, the Gupta brothers.

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